Law firms or rather a law firm is a legal business entity that is formed by a lawyer or a group of lawyers irrespective of the numbers to practice law or even better they are formed by the lawyers to overlook or oversee law being practiced. The law firms offer an array of functions, the primary function is to advise their clients that is the either individual or corporation about their legal rights or responsibility. Nevertheless the law firms often offer representation to their clients in a number of cases category, this may include the civil or the criminal cases, business transaction cases and other matters that legal advice and assistance is sought.
In many countries or rather in many jurisdictions there are an array of laws that are put in place about the ownership of a law firm or law firms, it is only lawyers that are allowed to own a law firm or rather those that are not lawyers are generally not allowed to own or manage a law firm. Thus the law firms are not capable of raising quick capital through the public offering on the stock market like it is the case with the other corporation or other business entities. The law firms must, therefore, raise capital from the existing or the additional equity partners or either taking debts normally in the form of the line of credit. Some countries or rather in some states this complete hindrance non-lawyers ownership or management of the law firms has been codified with or rather by their bar association. In ranking the law firms performance there are three consideration that are often made, this may include the.
The law firms profit per partners, the net operating income that is divided among the equity partners. Potential partners will only wish to venture where there returns will be equal to their efforts, this is evident as they will only be attracted the firms that only make good return. The revenue per lawyer is the other standard measure that is used in the performance evaluation. Thirdly there is the average compensation which is also used in the performance evaluation.
This is may arise based on the defendant ownership of the premises.